Interesting read on taxes

[p7050]

Talked to a friend of mine who contacted ebay about the New online sales tax law and he stated that ebay is going to hold off of doing anything since thery do not do the selling the sellers do they are just a website for people to list there Items. I then contacted the new company that ebay is going to for payments Adyen about them doing the taxes for the sates that collect taxes and they told me they are not a tax company we are a third party company just like paypal who collects the funds for ebay. So looks like I might put my store on hold until I find out what ebay is going to do. I have items on etsy right now and they pay the taxes for the states that are needed. Thanks

[1786davycrockett]

First of all, there is no "New online sales tax law."

The US Supreme Court made a decision that INDIVIDUAL states, which CURRENTLY have laws regarding the collection of state sales taxes on internet sales, may indeed collect those taxes due to those INDIVIDUAL states.

Currently, nearly ALL the individual states do NOT have state laws regarding the collection of sales tax on internet purchases.  This MAY change in 2018, or 2020, or 2022 -- or NEVER.  It all depends upon the legislatures in the individual states.

And there is currently NO plan on a FEDERAL level to impose a FEDERAL sales tax on internet purchases.

[ilikestuff6969]

Federal Sales Tax?  WTH is that?

[1786davycrockett]

In previous discussions of the recent US Supreme Court ruling regarding individual state sales tax on internet purchases, some individuals in the eBay community have thrown up (an appropriate phrase, doncha think?) a U. S. Internal Revenue-imposed sales tax on internet purchases.

And just as quickly, other members of the eBay community have shot it down, faster than the final voyage of the "Hindenburg."

Let's not worry ourselves about that which does not currently exist -- there are plenty of other things to worry about for everyone!

[csbbct]

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@p7050 wrote:

Talked to a friend of mine who contacted ebay about the New online sales tax law and he stated that ebay is going to hold off of doing anything since thery do not do the selling the sellers do they are just a website for people to list there Items. I then contacted the new company that ebay is going to for payments Adyen about them doing the taxes for the sates that collect taxes and they told me they are not a tax company we are a third party company just like paypal who collects the funds for ebay. So looks like I might put my store on hold until I find out what ebay is going to do. I have items on etsy right now and they pay the taxes for the states that are needed. Thanks

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There are a few other active discussions on this topic already so I don't want to rehash everything stated in those other threads, but just wanted to post here what eBay's CEO Devin Wenig said at the eBay Open 2018 in Las Vegas last week.  He said that eBay is still fighting for the federal government to take over and pass one simple, national sales tax.  If this does not work he said (I wrote down exactly the quote) "eBay will have the tools necessary for all sellers to collect and remit taxes in every tax jurisdiction in the U.S.; we will do that; we will be ready; we will have the tools necessary to help you collect if it's needed.  Our hope is that it won't be needed and that the Feds will pass a law that has a meaningful small business exemption". 

[myjunqueyourtreasure]

And why do WE have to do it when ebay will be the "facilitator" as per the states new laws (that have it already)?

Might have known ebay would try to fob it off on the sellers.

[1786davycrockett]

If eBay should decide that individual sellers are to be faced with collecting, reporting and distribution of the hundreds of different sales taxes from around the United States, nearly EVERY small seller will find it financially necessary to close up shop, lock the door and go home.

In Minnesota alone, there are 28 different sales taxes, depending upon which city, county and/or financial district you may live; so the Minnesota State Sales Tax of 6.875% is only the base, while 7.875% is the highest.  And the sales tax is based upon the location of PURCHASE, and NOT the location of the SELLER.

Additionally, if eBay requires each seller to be the collector, reporter and distributor of individual sales taxes to each separate state collection center, each ebay seller will also be required to fill out the paperwork necessary -- IN EACH STATE!!! -- to collect, report and distribute sales taxes which the seller will need to collect.  These licenses to sell are NOT cheap; and, in some states, need to be renewed (and purchased again!) annually!  Imagine having to purchase sales tax licensing certificates for ALL 50 states (plus the individual US Territories, as well), plus filing reports on a quarterly basis to EACH state and territory, as well as making quarterly payments to each state and territory.  Most of us tiny sellers would just walk away from eBay, as the administrative costs for collecting, reporting and distributing individual state sales taxes would easily cost more than most of us make on an annual basis.

If eBay plans to fob off the sales tax responsibility upon its individual sellers, eBay better get ready for a HUGE exodus out the back door, 'cause the "mom 'n' pops" just can't afford it.